A pipeline construction program is underway to facilitate the tie-in of the Company's two successful wells drilled earlier in the year at Grouard in which the Company holds a 100% and 67.5% working interest respectively. These two wells are expected to be brought into production in early January 2006. Both wells combined are expected to add an additional 0.35 million cubic feet per day (58 barrels of oil equivalent per day). Testing remains to be completed on the Company's 87.5% working interest exploration test well near Grouard. Current production at the Grouard property is 1.5 mmcf/d (250 boed).
The Company also reports that production from the Company's two producing gas wells near Lavoy, Alberta has been restricted until further notice. The Company is experiencing high pipeline pressures in the 3rd party mid-stream transport line which has resulted in approximately 1.2 mmcf/d (200 boed) being backed out of the Company’s 2.7 mmcf/d (450boed) of production from the two wells. Upon a decrease in pipeline pressures, the wells will be brought back to full production capacity.
The Company has drilled, cased and completed its 100% working interest wells at Fort Pitt and Senlac in Saskatchewan. The wells are scheduled to begin production testing in the next week upon the arrival of a service rig. Both wells will be immediately tied-in to a nearby third party facility for gas sales provided the wells prove to be economic.
At the Company's Battle Creek property, two of the six wells have been brought into production and the remaining four wells are waiting for equipment and personnel availability. Production rates on these wells will be released when the wells have stabilized.
Northern Sun is an Alberta-based exploration company, currently producing 500 boed and exploring for oil and gas in Alberta, Saskatchewan and the North West Territories.
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